Business, 01.03.2021 21:30, kittylover613
How does the tax benefit rule apply in the following cases?
a. In 2018, the Orange Furniture Store, an accrual method taxpayer, sold furniture on credit for $1,000 to Sammy. Orange's cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000 because Sammy would not pay his bill. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange owner was in the 35% marginal tax bracket in 2018, the 12% marginal tax bracket in 2019, and the 35% marginal tax bracket in 2020.
Orange Furniture must include $in gross income as the recovery of a prior deduction. The timing of the income and deductions cost Orange $
b. In 2018, Marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid. This increased his itemized deductions to a total that was $800 more than the standard deduction. In 2018, Marvin received a $1,600 refund when he filed his 2018 state income tax return. Marvin was in the 12% marginal tax bracket in 2018, but was In the 35% marginal tax bracket in 2019. How much must Marvin include in his gross income for 2019?
c. In 2018, Barb, a cash basis taxpayer, was in an accident and incurred $8,000 in medical expenses, which she claimed as an itemized deduction for medical expenses. Because of the 7 .S%-of-AGI reduction, the expense reduced her taxable income by only $3,000. In 2019, Barb successfully sued the person who caused the physical injury and collected $8,000 to reimburse her for the cost of her medical expenses. Barb was in the 22% marginal tax bracket in 2018 12% in 2019. What amount, if any, will Barb include in her 2019 gross income?
Answers: 2
Business, 21.06.2019 22:10, maddy6882
You have just received notification that you have won the $2.0 million first prize in the centennial lottery. however, the prize will be awarded on your 100th birthday (assuming you're around to collect), 66 years from now. what is the present value of your windfall if the appropriate discount rate is 8 percent?
Answers: 1
Business, 23.06.2019 00:30, KittyGotham
Emerson has an associate degree based on the chart below how will his employment opportunities change from 2008 to 2018
Answers: 2
How does the tax benefit rule apply in the following cases?
a. In 2018, the Orange Furniture Stor...
Biology, 28.09.2019 04:30
History, 28.09.2019 04:30